Starting a business in Bangladesh is so easy than ever. Government and other related authority are much more helpful for anybody who is interested to start a business in Bangladesh. Processes are now more simpler, automated, less bureaucracy and paperwork. So it is the best time to make a plan to start your business in Bangladesh. I have tried to write this large article that can provide you a complete guidelines to start your next business.
Prepare your mindset
First of all before starting your business, you need to prepare your mindset about you are going to start a new business. Psychologically you have to get prepared. Developing a profitable business in Bangladesh is not so easy. It requires hard work, accurate business plan, a team of strong similar minded people to work for you. So before doing anything you ask yourself this question “are you ready to start this hard journey and are your prepared to dedicate yourself to make it sustainable for long term?”. If the answer is yes, then you are ready to kick it off altogether. Now you just need to understand the process, official and legal procedure to start your business in Bangladesh. Remember every business can not be seen as profitable but your goal is to make it profitable and sustainable in long term. So keep faith in yourself.
How to choose a profitable business idea in Bangladesh?
There are lots of business ideas that are profitable in Bangladeshi industry. But don’t let other people choose that for you. You have to choose your own business by yourself. For Bangladeshi entrepreneurs, I already wrote an article about the most profitable business in Bangladesh. You can read it in your leisure time. Here are few list you can read that will help you to choose a good business idea for yourself.
- Ask idea from your friends, family and closed ones
- Find out what you love most and who is already doing that business
- Use services from similar companies, figure out their weakness and improvements point of their products & services
- Search Google and read informative articles
- Find at least one person who you can trust and can start working for you
Effective business plan for starting your business in Bangladesh
So you prepared your mindset, you also studied on business ideas and found one that you love most and see potential in Bangladeshi industry. Now its time to make a business plan. An effective and accurate business plan can make any business profitable in short term. But I would strongly recommend you to make your business plan for long term profit. Because if you prepare your business plan for short term profit, there can be more uncertainty in making business sustainable for long term. To prepare an effective business plan for starting your new business in Bangladesh follow this list –
- Hire a person who has business or management educational background or find any third party consultancy firm to write the business plan for you. If you think you can do it, you can do it. There are lots of sample business plan on the internet if you search about that on Google.
- Validate that business plan by discussing with your nearest and dearest ones, with friends or closed on who you can trust. Ask their suggestions
- Set your goal, mission and vision
- Think about investment plan
Find a suitable name for your business
You did a great job by preparing your business plan. Now its time to execute it. Before doing anything else you need to find a good name for your business. Your closest relatives or friends can help to find out a good business name. Do the following –
- Make a list in your mobile phone to keep notes of all the names pop into your head otherwise you will forget
- Share those with close relatives or friends
- Find meaningful name
- Search a domain name with that name. Domain name is important because later you need to create a website for your business. You can search your domain name from here.
- Search your business name from RJSC website for legal registration in Bangladesh.
Registering your business in Bangladesh
Now its time to form a legal paper work for your business so you can start operating legally in Bangladesh. To do that I have prepared a checklist for you so you can easily register your business in Bangladesh under the appropriate law and authority. There are two ways to operate your business in Bangladesh.
- Private/Public Limited company
- Single proprietorship with trade license only
If you want to form private/public limited company, you have to go through a long process but don’t worry. All processes are easy. Just stick to the point and go through one by one.
Register private/public limited company in Bangladesh
To register your company as limited company, you have to follow all the rules set by Registrar of Joint Stock Companies & Firms (RJSC). But all the rules are simple paperwork that you can do by yourself. But I would recommend you to contact with any legal consultancy firm who can handle your company registration under RJSC in Bangladesh. I will suggest some of their name and contact details later.
So here is the task list you need to prepare before starting the procedure to register your company in Bangladesh.
- Name clearance certificate by RJSC
Go to RJSC website to search your business name. If it’s available then you have to book that name until your registration process complete. To search your company name availability in Bangladesh, go to http://app.roc.gov.bd:7781/psp/nc_search?p_user_id=
- Apply for name clearance
After searching the name if it’s available then you need to apply for that name. To apply for name clearance in Bangladesh, you need to go to http://app.roc.gov.bd:7781/psp/rjschome and create your account there and follow their on-screen instructions & procedures. All are simple
- Prepare documentation for registration
a. Memorandum and Articles of Association of the company;
b. Promoters’ resolution to open a Company in Bangladesh;
c. Obtaining and executing the following forms for registering the company with RJSC:
d. Filled in Form I: Declaration on registration of Company;
e. Filled in Form VI: Notice of situation of registered office;
f. Filled in Form IX: Consent of director to act;
g. Filled in Form X: List of persons consenting to be directors;
h. Filled in Form XII: Particulars of the directors, manager and managing agents.
- Photocopy papers
a. National ID card of all the partners/owners
b. E-TIN certificate for all the partners/owners. If you don’t have e-TIN, you can get your e-tin certificate from here.
c. 5 copies passport size photograph for every partners/owners
Now after preparing those documents, you need to contact with a consultation firm to file the application in RJSC for registration of your company in Bangladesh. But if you contact with any legal consultancy firm upfront then they can handle all the above things for you. So if you want to spend some money to avoid hassle, you can just hire any legal consultant to do those things for you. Or if you want to do all things by yourself, you can do that too.
So after all the paperwork, you need to deposit the government fees to Bank and get the receipt. After getting receipt submit the paperwork to RJSC office. If everything goes well, you will get your incorporation certificate without couple days. See the RJSC fees from here.
Start business with just a trade license in Bangladesh
Now another simple way to start operating here in Bangladesh. Just go to your local city corporation office, paurashava, union parishad and apply for getting a trade license for your business. After application with a small government fees you can get your trade license in couple days.
With a trade license you are allowed legally to operate your business in your local area. Here you can see a guide to get your trade license in Bangladesh.
Open a Bank account for your business in Bangladesh
After getting everything ready, getting legal paperwork you need to open a business bank account in any Bangladeshi bank for your business. To open a business bank account, go to your nearest Bank and ask their guidance. It’s simple.
Now you are all done. Start hiring employee, rent an office space, do some interior and start operate your new business. Have a great success. Remember to pay your taxes and other legal fees to keep you safe legally. If you face any trouble registering your business, operating it you can connect with me directly so I can provide an effective consultation for you to make sure everything is going smoothly and perfectly.